Strategic Financial Imperatives

An engineers’ guide to business financial performance

For engineers used to the certainty of the physical sciences, finance can sometimes seem like it comes from a different universe.  It is however, important for managers to understand the language of finance, how the business works from the “big picture” financial perspective and how you personally impact the organisation’s financial productivity and profitability.  Do you need to understand:

• How do executive teams often measure financial performance?
• The interrelationship of key financial variables and metrics?
• What financial levers can be used to improve financial performance?

This course uses financial models and a building block approach to develop knowhow and confidence.  Learn more below:

• Learning Outcomes
• Course outline
• Facilitator Bio
• Testimonials
• In-house delivery

Learning Outcomes for Strategic Financial Imperatives   

• Good grasp of the interrelationship of financial variables and metrics.
• Increased business acumen and orientation to financial goals/priorities.
• Ability to ask sensible questions about financial issues and performance.
• More confidence in communicating with senior managers and financial people.
• Better able to justify proposals/recommendations from a financial perspective.
• Ability to show how individual projects contribute to Return on Capital.

Course Outline for Strategic Financial Imperatives

The 2-day course consists of eight comprehensive modules:

1. Asset Funding
2. Financial Leverage
3. Profit vs. Cash Flow
4. Working Capital Management
5. Return on Capital
6. Weighted Average Cost of Capital
7. Economic Profit
8. Financial Drivers.

The content of the course includes coverage of the following financial knowledge:

• What shareholders expect to get.
• The ‘Window Model’ of a business
• How the assets of a business are funded.
• The fundamental accounting equation.
• Types of assets, liabilities and expenses.
• Relationship of Income Statements and Balance Sheets.
• The essence of accrual accounting.
• How a business can go bust showing a profit.
• Measurement of profit and profitability.
• Cash flow versus profit (and why it matters).
• Three types of cash flow and their relevance.
• Ways of increasing operating cash flow.
• The key components of working capital.
• The importance of managing ‘free credit’.
• The minimum return required by shareholders.
• How WACC is calculated and it’s importance.
• Why economic profit is so important to shareholders.
• Key variables for managing Return on Capital.
• The financial responsibilities of very manager
• Hidden costs and why they are so important.
• Good vs. bad costs (why cost cutting can be harmful).
• The relationship of project and corporate financial objectives.
• Effect of project performance on corporate financial results.
• The hierarchy of financial ratios that underpin Return on Capital.

In-House Delivery of Strategic Financial Imperatives

EEA offers organisations the opportunity to deliver this course in-house which may provide advantages of the increased flexibility to:

• Customise to their context
• Include non technical graduates on the program
• On the delivery dates and timeframes
• Build a graduate “team’ within the business
• Change the workshops to reflect their specific requirements

Request an In-house Quote

Target Audience

This program will benefit any non-financial manager or specialist who wants to develop their financial acumen and appreciation of the financial imperatives of the organisation.

Testimonials

"Gained more financial knowledge from this course than I have in 15 years."  

"Excellent.  One of the best courses I've done and totally applicable to my job.  Strongly recommended."

Very entertaining and competent presentation on a usually dry subject.  Will be useful both at my work and private life.

"The workshop was a total surprise to me.  I had expected a boring two-day course…  Boy was I wrong!!  The course was well presented and run at a lively pace and encouraged participation.  10 out of 10 for a job well done." 

Facilitator Information

Facilitator Biography

Geoff has extensive experience in the provision of consulting and training services, both in Australia and overseas. He is well known for designing innovative and highly effective training programs and facilitated performance improvement tools/processes.  

Geoff also has a reputation as a talented facilitator.  He believes that learning should be stimulating and enjoyable, and is enriched by humour.  As a result, he consistently receives excellent feedback on the programs that he delivers.

He has a Bachelor of Business Science (Hons) and an MBA degree (specialising in Organisation Development).
 

A 10% saving for Engineers Australia Members.